📊 OM Key Takeaways
Is Outset Medical, Inc. (OM) a Good Investment?
Outset Medical is a pre-profitability medical device company with healthy gross margins (43.4%) but severe operating losses (-60.7%) and negative operating cash flow, indicating unsustainable burn. While the 85.5% YoY EPS improvement and 5.1% revenue growth signal a potential profitability inflection, the company has only ~2.4 years of cash runway at current burn rates, making execution critical and downside risk substantial.
Outset Medical shows modest top-line growth but remains deeply unprofitable with highly negative operating and net margins, and materially negative free cash flow. Liquidity ratios are strong and losses improved YoY, yet cash burn and negative interest coverage create elevated financing risk without clear evidence of operating leverage.
Outset Medical, Inc. Key Strengths (OM)
- Healthy gross margins of 43.4% demonstrate strong underlying product unit economics
- Significant profitability improvement with 85.5% YoY EPS improvement suggests narrowing losses
- Excellent liquidity position with 6.29x current ratio and 30.6M in cash reserves
- Positive revenue growth of 5.1% YoY despite pre-profitability stage
- Moderate leverage with 0.87x debt-to-equity ratio
- Strong current and quick ratios support near‑term liquidity
- Losses and EPS improved meaningfully YoY
- Gross margin at ~39% with low capex intensity
OM Stock Risks: Outset Medical, Inc. Investment Risks
- Severe operating losses of -16.9M on only 27.9M revenue with -60.7% operating margin unsustainable
- Negative operating cash flow of -12.8M annually with limited cash runway of ~2.4 years
- Negative interest coverage ratio indicates operating income cannot cover debt service obligations
- High operating expense base relative to revenue size requires revenue acceleration or cost reduction for viability
- Pre-profitability status creates significant execution risk; any growth deceleration threatens cash viability
- Persistent large operating losses and -39% FCF margin
- Negative interest coverage and meaningful debt increase refinancing/dilution risk
- Slow ~5% YoY revenue growth questions scalability toward profitability
Key Metrics to Watch
- Operating cash flow trajectory must turn positive within 2-3 quarters to validate sustainability
- Revenue growth acceleration required beyond current 5.1% to reach breakeven timeline
- Operating margin progression quarter-over-quarter must show consistent improvement toward breakeven
- Cash burn rate and cash balance runway duration relative to profitability path
- Gross margin stability critical to ensure pricing power and unit economics remain intact during scaling
- Quarterly free cash flow and cash/short‑term investments runway
- Operating margin trajectory and gross margin sustainability
Outset Medical, Inc. (OM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.29x current ratio provides a solid financial cushion.
OM Profit Margin, ROE & Profitability Analysis
OM vs Healthcare Sector: How Outset Medical, Inc. Compares
How Outset Medical, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Outset Medical, Inc. Stock Overvalued? OM Valuation Analysis 2026
Based on fundamental analysis, Outset Medical, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Outset Medical, Inc. Balance Sheet: OM Debt, Cash & Liquidity
OM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Outset Medical, Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $-52.28 indicates the company is currently unprofitable.
OM Revenue Growth, EPS Growth & YoY Performance
OM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $27.9M | -$19.0M | $-1.03 |
| Q3 2025 | $28.7M | -$17.8M | $-1.00 |
| Q2 2025 | $27.4M | -$18.5M | $-1.04 |
| Q1 2025 | $28.2M | -$25.8M | $-3.66 |
| Q3 2024 | $28.7M | -$27.9M | $-0.55 |
| Q2 2024 | $27.4M | -$34.5M | $-0.66 |
| Q1 2024 | $28.2M | -$39.9M | $-0.78 |
| Q3 2023 | $27.8M | -$36.9M | $-0.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Outset Medical, Inc. Dividends, Buybacks & Capital Allocation
OM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Outset Medical, Inc. (CIK: 0001484612)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OM
What is the AI rating for OM?
Outset Medical, Inc. (OM) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 58% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OM's key strengths?
Claude: Healthy gross margins of 43.4% demonstrate strong underlying product unit economics. Significant profitability improvement with 85.5% YoY EPS improvement suggests narrowing losses. ChatGPT: Strong current and quick ratios support near‑term liquidity. Losses and EPS improved meaningfully YoY.
What are the risks of investing in OM?
Claude: Severe operating losses of -16.9M on only 27.9M revenue with -60.7% operating margin unsustainable. Negative operating cash flow of -12.8M annually with limited cash runway of ~2.4 years. ChatGPT: Persistent large operating losses and -39% FCF margin. Negative interest coverage and meaningful debt increase refinancing/dilution risk.
What is OM's revenue and growth?
Outset Medical, Inc. reported revenue of $27.9M.
Does OM pay dividends?
Outset Medical, Inc. does not currently pay dividends.
Where can I find OM SEC filings?
Official SEC filings for Outset Medical, Inc. (CIK: 0001484612) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OM's EPS?
Outset Medical, Inc. has a diluted EPS of $-1.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OM's fundamental grade?
Based on our AI fundamental analysis in May 2026, Outset Medical, Inc. has a C grade with 58% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OM stock overvalued or undervalued?
Valuation metrics for OM: ROE of -17.0% (sector avg: 15%), net margin of -68.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is OM's AI grade for 2026?
Our dual AI analysis gives Outset Medical, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OM's free cash flow?
Outset Medical, Inc.'s operating cash flow is $-12.8M, with capital expenditures of $65.0K. FCF margin is -46.3%.
How does OM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -68.1% (avg: 12%), ROE -17.0% (avg: 15%), current ratio 6.29 (avg: 2).